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coeur mining inc (CDM1) Details

Coeur Mining, Inc., through its subsidiaries, engages in the ownership, operation, exploration, and development of silver and gold mining properties primarily in the United States, Mexico, Bolivia, Argentina, Australia, Ecuador, Chile, and New Zealand. Its principal properties include the Palmarejo silver and gold mine in Mexico; San Bartolomé silver mine in Bolivia; Kensington gold mine located in Alaska; the Rochester silver and gold mine in Nevada; and the Endeavor mine, an underground zinc, lead, and silver mine in Australia. The company also owns the La Preciosa and Joaquin silver and gold exploration projects in Mexico and Argentina; and other precious metal royalties. It markets silver and gold concentrates to third-party smelters and refineries in China and Japan. The company was formerly known as Coeur d’Alene Mines Corporation and changed its name to Coeur Mining, Inc. in May 2013. Coeur Mining, Inc. was founded in 1928 and is based in Chicago, Illinois.

coeur mining inc (CDM1) Key Developments

Coeur Mining, Inc. Announces Preliminary Production Results for the Second Quarter of 2015; Provides Production Guidance for the Year 2015

Jul 9 15

Coeur Mining, Inc. announced preliminary production results for the second quarter of 2015. The company announced preliminary second quarter production of 4.3 million ounces of silver and 80,855 ounces of gold, or 9.1 million silver equivalent ounces.
For 2015, the company expects total silver production in the range of 14.8 million ounces - 16.0 million ounces, total gold production of 294,000 ounces - 323,000 ounces, total silver equivalent production of 32.4 million ounces - 35.4 million ounces.

Coeur Mining, Inc. entered into an agreement for a new $100 million, five-year, senior secured term loan. Reflecting the net proceeds from this financing and simultaneous repayment of the existing $50 million bridge loan due March 2016, the company’s pro forma cash, cash equivalents, and short-term investments as of March 31, 2015 total $225 million. The term loan will have an all-in yield of approximately 9.5% inclusive of a 98% of par value issue price, will mature in June 2020, and does not contain any financial maintenance covenants. It will be amortized at 1% per year and includes an annual prepayment requirement of 50% of excess cash flow. The intended use of proceeds is to repay the $50 million bridge loan under Coeur’s credit agreement with the Bank of Nova Scotia, for general corporate purposes, and to pay transaction expenses. The loan is expected to close and the $50 million bridge loan is expected to be repaid on or before June 26, 2015. Barclays Bank PLC acted as sole lead arranger and sole book runner for the financing.
To further bolster liquidity, the company has significantly enhanced Rochester’s 2016 operating plans and believes the existing leach pad has sufficient capacity to allow for the deferral of construction of the Stage V leach pad from 2016 to 2017 without materially affecting the mine’s long-term production schedules or unit costs, as summarized below: Stage V heap leach pad construction initially scheduled for 2016 has been deferred until 2017, postponing an estimated $26 million of the related capital expenditures; Overall expected capital spending for the Stage V heap leach pad has been reduced by $17 million by using existing conveyor and load-out equipment; and Higher grade tons originally expected to be mined in 2017 have been re-sequenced into 2016 to boost near-term production and cash flow. The company believes that existing leach capacity at Rochester is sufficient to support the mine plan through early 2018. Necessary approvals for the Stage V construction and the eventual Stage IV expansion are on-track to be received by early 2016 with preparatory work for Stage V to begin shortly thereafter. Major construction activities are expected to begin in the second quarter of 2017 with initial production from the Stage V leach pad expected to occur in late 2017.

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